The AirPort Express is an 802.11g device, in order for the AirPort Extreme/Time Capsule to talk to the AirPort Express, it will need to use the 802.11g method. It can't use both at the same time (unless it had two cards in it). Because it's running in 802.11g mode to talk to the AirPort Express, your Mac has to talk to it in 802.11g, as the AirPort Extreme/Time Capsule has 802.11n disabled.
If you let the Macs talk to Time Capsule in 802.11n mode, the AirPort Express can't join in, so will be on it's own network. On your Mac, you'd need to connect to the AirPort Express network in order to control it, then back to the Time Capsule network for the Mac to backup to it. Kinda defeats the purpose. Apple should shove a 3.5mm output on the time capsule, or upgrade the AirPort Express to 802.11n
This is how I think it works anyways, I haven't used an AirPort Extreme in conjunction with an 802.11g network (just a sole 802.11n network).